fire safety & risk assessment workshop
TRANSCRIPT
FIRE SAFETY & RISK ASSESSMENT WORKSHOP
SESSION 02
Fire Risk Assessment – An Insurance approach
August 21, 2019
Ahsan Jamal ACII MIIRSM AIFirE PE
Chartered Insurance Risk Manager
Head of Learning & Development
Agenda
Need and Scope of Fire Risk Assessment
Fire Protection System – Inspection, testing and maintenance
Fire Pre-plans
Hot Work Permit
Fire Impairment Procedure
Fire Risk Assessment Technique
Need & Scope of Fire Risk Assessment
A fire risk assessment is an organized and methodical look at the premises, the
activities carried on there and the likelihood that a fire could start and cause harm to
those in and around the premises.
Objectives:
Identify Fire Hazards
Reduce the risk of those hazards as practically as possible
Implement physical and procedural fire protection and management systems to
ensure safety of people and property
Major Areas of concern in rating risk by Insurers
1. Inspection (including Fire protection system)
2. Safety
3. Fire Protection System
4. Operations - including Manning, Training, Systems, Procedures
5. Maintenance
6. Process Area Layout
7. HSE Standards & Compliances
8. Site Layout
9. ERP - Emergency Response Plan
10.Fire Detection & Alarm
Fire Protection System – Inspection, testing & maintenance
Purpose is to record actual condition of protection system / equipment
Regular inspections to determine the frequency of maintenance in order to
prevent failure of protection system / equipment
Develop inspection & maintenance system that will cover all fire protection
equipment with following details:
Equipment features
Manufacturer’s information
Planned maintenance measures & scheduled dates
Inspection history
Fire Protection System – Inspection, testing & maintenance
Insurer’s recommendations
All fire protection control valves are open and sealed.
Visually inspect all fire doors and shutters - look for stock blocking the door, bent
rails, missing fusible links and missing rollers
Public and private water supplies are in service
Critical components of automotive fire apparatus are checked in accordance with
manufacturer’s recommendations
Special extinguishing systems, including carbon dioxide, dry chemical, foam, foam-
water, explosion suppression and spark extinguishing systems are in service.
Fire Protection System – Inspection, testing & maintenance
Insurer’s recommendations
Hose houses, hydrants and monitor nozzles to be certain they are well-arranged,
properly equipped and maintained and accessible at all times.
Fire doors and shutters manually closed to check for proper operation.
All sprinkler control valves should be verified that they are accessible, undamaged,
and locked in the open position
Visually inspect all sprinkler heads and piping annually. Check for damaged
piping, leaking piping or sprinkler heads, missing hangers, etc.
Fire Protection System – Inspection, testing & maintenance
Insurer’s recommendations
Automatic fire alarms (smoke detectors), manual pull stations, and the alarm panel
should be functionally tested at least annually, per NFPA 72, Section 10.4, by a
reputable contractor
The plant fire extinguishers should be placed on a monthly visual inspection
program, to verify that they are accessible, undamaged, and fully charged.The
extinguishers are inspected annually by an outside contractor, in accordance with
NFPA 10
A formal written No Smoking policy should be developed to address smoking at
this plant. Smoking should be restricted to a few designated areas
Fire Protection System – Inspection, testing & maintenance
Insurer’s recommendations
NFPA 850 for Power Plants (both operational and construction)
Annual Fire Pump Performance Test
Initiate Weekly Fire Pump Testing Program & record results – Min. 10 min (electric
driven) & 30 min (diesel engine) – Refer: NFPA 25
Initiate Mutual Aid Fire Drill with nearest public fire station (at least annually)
Industry Examples
Fire Pre-Plans
Background
Potential for Major Fires in installations handling large quantities of hydrocarbon
products
Numerous large damaging fires in the past which includes:
Tank fires (involving massive product losses)
Process unit fires (major plant damage and business interruption)
Fire Pre-Plans
Objectives & Importance
Develop a good level of fire pre-plans in Oil, Gas and Petrochemical Industry
Also reflected in the insurers risk ranking criteria
Support and define risk improvement recommendations
Provide detailed advice to clients seeking to improve their fire protection and
emergency response systems
Fire Pre-Plans
Plant Fire Protection - General Principles
Control loss of contamination and ignition
Detection & Alarm system
Active & Passive Fire Protection facilities
Emergency Response Systems & Resources
Fire Pre-Plans
What is Fire Pre-plans?
Scenario based plan – specific to a particular process area or equipment
Referenced in the site emergency response plan
Describe how fire protection & emergency response systems are to be used in
specific fire scenarios
Assess and identify the resources required for fire fighting
Use for regular fire training and drills
API RP 2001 Fire Protection
in Refineries
Fire Pre-Plans
What is Fire Pre-plans?
Fire Pre-plans should consider:
Nature & likely effects of various fire scenarios
Materials involved (both process & plant construction materials)
Surrounding environment
Plant Layout
Special hazards (available in particular area)
Resources available
Fire Pre-Plans
Specific requirements
1. Policy and Procedure
HSE management system should include the procedure for the development and
application of fire pre-plans
Copy of fire pre-plans should be included in the site emergency procedures
manual
Should be a controlled document
Corporate standards for fire pre-plans should be available to member sites
Fire Pre-Plans
Specific requirements
2. Ownership and Development
Owned by site emergency response team
Input from all involved and affected teams (particularly operations team)
External / Local fire brigade should be familiar with the site fire pre-plans
A fire pre-plan is a “desk-top” derived plan – additional input from exercise and
incident feedback is required
Fire Pre-Plans
Specific requirements
3. Fire Pre-plan portfolio
Major storage tank area
Pressurized storage vessel and containment area – including key steps to avoid
Boiling Liquid Expanding Vapor Explosion (BLEVE)
Refrigerated storage tanks
Berth at the marine terminal
Rail and truck loading gantry
4. Format and Content
Fire Pre-Plans
Specific requirements
5. Drills
Regular drills by the emergency response team at site
Drills should be carried out in collaboration with operations team
Idea is to maintain familiarity with the pre-plans and testing the information &
response steps
Fire Pre-Plans
Specific requirements
6. Distribution
Master copies to be retained electronically
Controlled copies to be kept in site emergency manual
Controlled copies of area-specific fire pre-plans to be kept in area emergency
procedure manual
Controlled (laminated) copies of all fire pre-plans to be kept on emergency
response vehicles
Fire Pre-Plan - Example
Hot Work Permits
Any activity or process that includes welding,
flame cutting, abrasive cutting i.e. work that
produces heat or sparks that represent an
ignition source
The hot work permit helps the permit authorizing
individual, hot work operator, and fire watch
recognize potential hazards
When issuing the permit, the safety precautions
to be taken for all work must be determined
individually on site, before work involving a fire
hazard starts
Hot Work Permits
Before Choosing Hot Work the Safety Team should evaluate ways to Reduce or
Eliminate Hot Work Hazards:
One process to reduce or eliminate hot work hazards is called “Recognize,
Evaluate, and Control”
This process is covered in NFPA 51B and focuses on the following:
Recognize – Determine if fire risks exist before hot work is started
Evaluate – Determine if hazards are present, especially hazards that could fuel
a fire (flammable and combustible liquids or gases and simple combustibles)
Control – Take appropriate steps to eliminate or minimize the hazards.
Hot Work Permits
When carrying out the work, care must be taken to avoid potential fire and
explosion hazards:
Totally remove combustible or explosive materials or store them at a safe
distance
Adequately cover combustible materials or objects, or keep them moist
Close any openings to adjacent areas
Ensure that the person carrying out the hot work have sufficient skills for their job
and for operating equipment safely
Ensure that fire extinguishers are in place
Fire security personnel should provide additional surveillance during hot work
Hot Work Permits
Procedure should be in place to ensure that hot work
permit is obtained from the plant operations manager
prior to execution of the work
Copies of the hot work permit should be deposited with
the operations manager and also be displayed on site,
clearly stating how long the work is likely to take and
signed by the person responsible
On completion of work, plant / work area must be handed
over
Hot Work Permits
Essence of Good Hot Work Permit Program:
The program should be supervised by a qualified individual
This individual should examine the location of any proposed work, insist on other
methods if conditions cannot be made safe and make sure that the precautions
listed on the permit are taken
The individual should then sign a permit and give it to the welder. No work
should be allowed without a properly signed permit at the job site
If work at a location continues for more than one shift, a new permit should be
issued for each shift
Areas can be made safe with the use of welding pads, blankets, or curtains,
clearing combustibles from a 35-foot diameter space around the hot work, or
moving the hot work to an area free of combustibles.
Post Hot Work Fire Watch (atleast 01 hour)
Fire Impairment Procedure
Definition
A protection impairment occurs when a fire (or explosion) prevention, protection,
alarm or supervisory system is shut off, impaired or otherwise taken out of service
completely or in part.
Examples of Protection System impairment:
Automatic sprinkler systems
Special extinguishing systems
Alarm, alarm supervisory, and fixed fire detection systems
Gaseous fire suppression systems
Fire Hydrant Main
Fire Pumps
Fire Impairment ProcedureSignificance
Insurance Risk Management should be notified of any significant fire protection
system impairment when the impairment extends beyond 24 hours
Notification should be made via the Insurance Risk Management Department to
insurers
Examples of Significant Impairment would be loss of functionality of complete fire
systems and or sub systems, such as:
Fire pumps
Large sections of fire main
Complete deluge or spray systems
Large areas of fire detection systems, i.e. local alarm panels etc.
Complete gaseous fire protection systems such as GT enclosures
Fire Impairment ProcedureSignificance
Fire systems that are isolated as part of a permit isolation, when the equipment
protected is out of service, such as CO2 protection on GT enclosures when the GT
is out of service, are not considered as impaired.
Fire Impairment ProcedureKey Requirements
Implement an impairment management program such as Global Asset Protection
Services (GAPS) / Marsh Impairment Procedure with these basic steps:
Assign responsibilities for impairment supervision (Maintenance Manager,
Emergency Coordinator)
Adopt a detailed system for supervision
Educate appropriate personnel as to the importance of impairment handling
and the facility’s procedures
Use Fire Impairment Notification form to notify concerned authorities including
Lead Insurer
Fire Impairment ProcedureTypes of Impairment
Emergency
Planned
Hidden
Fire Impairment ProcedureEmergency Impairment
An emergency Impairment occurs when a facility loses part or all of a fire protection
system. Broken sprinkler piping and damaged fire alarm panels are examples. If you
have an emergency impairment:
Shut down any hazardous operations, where practical, in an orderly fashion before impairing fire
protection. If possible, remove combustibles. Begin necessary repairs immediately
Notify the concerned team including Lead insurer using the Impairment Notification Form
Enforce no smoking and no hot work regulations in all affected areas
Any fire impairments to be recorded in plant status and shift handover logs. Have responsible
individuals tour the affected areas as often as needed, but never less than every hour.
Extra portable extinguishers should be installed and hoses deployed during impairment
Use emergency measures to keep items such as sprinklers and water supplies active
If parts have failed and are not held then temporary repairs should be made where possible and
parts should be expedited as far as possible
For short duration impairment a fire watch may be considered as an alternative
Restore normal protection as quickly as possible
Notify concerned parties after restoration of protection system
Fire Impairment ProcedurePlanned Impairment
A Planned Impairment is one that is needed to extend or adjust fire protection
systems for any reason. For planned impairments:
Plant team must control the impairment
Schedule only one impairment at a time
Notify concerned team including Lead Insurer at least 24 hours in advance, as applicable to site
conditions and requirements
Keep as much fire protection in service as possible or practical
Plan the work and arrange all needed items in advance to keep the impairment as short as possible
Enforce no smoking and no hot work regulation in all affected areas.
Any fire impairments are to be recorded in plant status and shift handover logs. Have responsible
individuals tour the affected areas as often as needed, but never less than every hour
Extra portable extinguishers should be installed and hoses deployed during impairment
Use emergency measures to keep items such as sprinklers and water supplies active
Shut down any hazardous operations, where practical, in an orderly fashion before impairing fire
protection. If possible, remove combustibles. Restore normal protection as quickly as possible
Notify concerned parties after restoration of protection system
Fire Impairment ProcedureHidden Impairment
A Hidden Impairment is one not known to management, but found through a good
self-inspection programme
When you find a hidden impairment:
Restore protection immediately
Report the discovery to management responsible for fire protection
Attempt to learn why it occurred
Notify site operations personnel and workgroups of any hidden impairments found
Loss Estimations – Fire Risk
Probable Maximum
Loss (PML)
Mitigated Scenario
Safety & Fire
protection system
working at the time of
loss
Fire, Explosion etc.
Estimated
Maximum Loss
(EML)
Worst Scenario
Rare but highly
destructive
Fixed Fire Protection
& Safety system not
functioning
Fire, VCE, HPVR
Maximum Amount
Subject (MAS)
Catastrophic
Scenario
Total destruction of
site
NATCAT, Aircraft
Impact etc.
Methodology
Step 1: Information request
Site layout plan
Building heights / number of floors
Occupancy
Contents and processes (fire / explosion hazards)
Description of construction (roof, ceilings, exterior and interior walls,
insulation materials)
Fire walls, Fire area separation walls
Methodology
Step 2: Subdivision of risks into Fire Areas
Buildings
Installations in the open (e.g. stocks stored in open)
Inside buildings
Spatial or Constructional Fire Area separation
A Fire Area is formed by one or several buildings or installations in the open which are not
separated from each other, but are separated from neighboring buildings or fire areas.
Fire Area Separation
FIGURE-1 Spatial Separation
Building A
Building B
Spatial Separation
D=20m
H1 = 20m
H2=15m
Fire Area Separation
Structural Fire Area Separation
Passive fire protection
Vertical / Horizontal Fire-resistant
areas
Example: Fire Wall / Perfect party wall
Fire Damage Area Size
Main factors
Degree of hazard
Adequacy of Fire protection (in Fire Area)
Adequacy of Manual firefighting (at site)
Methodology
Step 3: Distribution of Values
Building
Machinery / Plant
Stocks
Annual sales or Revenue (for Business Interruption)
Methodology
Step 4: Comparison of different loss scenarios
Property Damage (PD)
• Fire
• Vapor Cloud Explosion(VCE)
• Tank fire
• Vessel Disintegration
• Natural Perils
Machinery Breakdown (MBD)
• Rotating Machineries
• Generators
• Boilers
Business Interruption (BI)
• Process units
• Key machinery
• Utilities
• Customers
• Suppliers
• Natural Perils
Methodology
Step 5: Loss Estimate Calculations
For both PD + BI Loss estimates:
Largest PD / MBD Loss + its corresponding BI Loss
OR
Largest BI Loss + its initiating PD / MBD Loss
Oceanic House Mezzanine Floor 6-E
Street 11 Badar Commercial Phase V Ext. D.H.A. Karachi – 75500 Pakistan
Tel: +92 21 35244160 – 2 Email: [email protected]
Web: www.cermpakistan.com
Center for Enterprise Risk Management